ProSeries and Form 6198

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#1
MWPXYZ  
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Assuming that the At-Risk basis is the same as the Tax Basis,

and assuming that Proseries does not have a basis worksheet (that I cannot find).

is there a potential issue (that I am overlooking) in using the Form 6198 in Proseries to automatically make the entries to the second page of Schedule E ?

I only have one client whose At-Risk basis is different than Tax Basis.
 

#2
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I have the same Proseries issue that you do, I have an S corp K-1 loss that is limited by stock basis, but Proseries does not have a K-1 basis sheet( like Drake does) to limit the loss, so I am stuck using form 6198 to limit the loss. I used 6198 Part II as the adjusted basis is known from the 1120-S(which I did)
Last edited by TAXMASTER on 8-Aug-2020 11:25am, edited 1 time in total.
 

#3
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Sure it does. Look under the K-1 for the S corp. It's there. Basis info worksheet. How long you been using PS?
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#4
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Sure it does. Look under the K-1 for the S corp. It's there. Basis info worksheet. How long you been using PS?


You are missing the whole point. Sure there is a basis sheet in the 1120-S for each shareholder. But we are talking about the K-1 in the shareholders 1040. If there is a S corp loss then the loss maybe limited by basis. There is not( that we can find) a basis sheet in the Proseries 1040 K-1 that will limit the loss on Schedule E p2. Hence stuck with using F 6198 incorrectly.
Where as Drake has a basis sheet as part of the 1040 K-1 that will limit the loss on E p2.
 

#5
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Yeah, I get you and we all know that the basis sheet should be in the 1040 connected to the K-1 since some s/h's don't have access to the S corp return data. That said, it's so handy to have it in the 1120S worksheets so that we can easily update all s/h's before it rolls over to the 1040....where it will be limited based on what you entered....why don't you use the one in the 1120S? Unless you're not the preparer....?
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#6
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why don't you use the one in the 1120S


Yes, we are using the 1120-S shareholder basis sheet.

so that we can easily update all s/h's before it rolls over to the 1040....where it will be limited based on what you entered..


Thats the issue, where does it get limited?
 

#7
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The limitation needs to happen on the 1040. Not the 1120-S. The K-1 should include all losses and deductions regardless of what the limits might be. It has been abut 15 years since the one tax season I used Proseries for but its hard to believe that they would be so backasswards. Have you tried contacting tech. support? Maybe you just didn't see the basis screen in the 1040?
Because on T.A. ten was the most you were allowed
 

#8
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Have you tried contacting tech. support? Maybe you just didn't see the basis screen in the 1040?


Tech support no help. I cannot find a solution other than using the 6198. I assume OP has the same issue.
 

#9
MWPXYZ  
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I use UltraTax for corporate and partnership work.

I also have found the software versions of basis miss or ignore the interactions between debt and equity basis. (Or I don't get the software developer's train of thought.) So I track basis on spreadsheets. The contractors I work for try to keep equity at a certain level or increase it for bonding purposes. Likewise, any additional investment is classified as debt so that it may be withdrawn/repaid without affecting equity. At least, we minimize "conversations" that would run between the bonding company, the bonding agent, and the client during the short construction season.

Thanks to 168(k) the taxable income and loss vary widely from year to year.

So, having the basis calculated by the software, at the individual level; with tracking of unused losses would provide this sole practitioner "another set of eyes" with which to compare with my spreadsheet.

However, I am using 6198 to limit losses due to basis. And my original question was: should I be aware of any issues by using the Form 6198 limitation that ProSeries provides. Other than loans from related parties and loans with the entity as collateral I am not aware of any other differences that a small corporation would have.

I would do corporate returns with ProSeries, but last time I checked one could not run state depreciation schedules for the current and future year in ProSeries.
 


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